United Bank of India Car Loan
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United Bank of India is a state-owned financial services company headquartered in Kolkata, West Bengal, India. Presently the bank has a three-tier organizational setup consisting of its Head office in Kolkata, 35 Regional offices and 2001 branches spread all over India. After nationalisation, the bank expanded its branch network in a big way and actively participated in the developmental activities, particularly in the rural and semi-urban areas in conformity with the objectives of nationalisation. You have a wide range of choice of deposits offered by UBI. UBI car loan gives you the best cars avaiable with good rate of interest which saves your money. All you have to do is to follow some simple steps to get attractive deals.

United Bank of India Car Loan Interest RatesUpdated on 09 Dec 2016

Overview About United Bank Of India Car Loan

Getting a car is one of the goals most people set for themselves and a lot of people get old in the process of saving money to buy a car. With banks providing car loans, now it has become easy for people to fulfill their goal of having their own car while they are still young. United Bank Of India is one of the banks which provides car loans in India.

United Bank of India is one among the major banks in India and was nationalised in 1969. With over 2000 branches and offices across the country, the bank has a wide presence and works actively in the rural development sector.

Why Choose United Bank Of India Car Loan?

United Bank Of India has two schemes for car loans -

United Car Loan Scheme for new cars

United Car Loan Scheme for Pensioners for new and old cars (the car should be less than 4 years old)

United Bank Of India’s car loans allow a person to buy the best cars by availing them with good interest rates which helps him in saving money. The bank provides concessions to its borrowers who have a good history of dealing with the bank. It also has a separate scheme for pensioners who can get the benefit of car loans on both old and new cars.

Features of Car Loans from United Bank Of India

Quantum of Loan -

For United Car Loan Scheme -

In case of individuals, the quantum of loan is Rs. 30 lakhs maximum.

In case of Non- Individual, the quantum of loan is no more than Rs. 40 lakhs.

For United Car Loan Scheme for Pensioners -

For Pensioners, the amount of loan is maximum Rs. 4 lakhs. This sum is generated by distributing their net pension for 48 months and their loan amount has to be in multiples of 100.

Flexible Repayment Tenure -

Both the schemes allow people to pay the loan along with interest in a maximum of 84 Equated Monthly Installments (EMI). If someone decides to pay it early, then the bank does not charge them any fee.

Margin -

In case of a new car the loan margin is 15% on the road price of the car.

Concessions -

The Bank provides concessions in interest rates to their existing customers who have proved to be good borrowers.

Existing mortgagors who have been making regular payments for 2 years and credit card holders who have been in a good relationship with the bank for a minimum of 2 years, having a credit risk rating of UBICR - 3 get the benefit of this concession. Corporates, institutions, companies and firms also get to enjoy this concession if they promise to repay the loan through a single cheque or direct credit to the loan a/c.

Why apply for a United Bank of India Car Loan through Bankbazaar.com?

Bankbazaar.com is the best solution for people looking out for a good car loan. It helps a person research and compare quotes provided by different financial institutions on a single platform to get the best deals on insurance, credit cards, loans etc.

When a person applies for a car loan through Bankbazaar.com, he gets the advantage of comparing quotes and schemes provided by various banks, including their interest rates, benefits, margins, tenure, etc. The website provides a person with expert advice and reviews, helping him make the best choice suitable for him in an easy and hassle free way.

United Bank of India Car Loan Interest Rates

As per recent RBI guidelines, this bank follows the system of MCLR (Marginal Cost Based Lending Rate) to determine the rates applicable for car loans. Unlike most of the banks which maintain separate slabs of rate for various terms, United Bank follows a uniform approach.

United Bank of India Marginal Cost Based Lending Rate (MCLR) for New Borrowers

Benchmark MCLR rate

9.45%

Floating rate of interest (new cars)

10.00% (MCLR + 0.55%)

Floating rate of interest (used cars)

10.50% (MCLR + 1.05%)

A concession of 0.25% on the standard rate is provided on provision of collateral worth 50% of the loan value.

Note:The MCLR is subject to periodic revision as per bank’s credit policy and RBI’s quarterly reviews. Make sure to confirm with the bank on prevailing rates at the time of applying and choose the terms accordingly.

Eligibility Criteria for Car Loan

For United Car Loan Scheme -

The car being bought is for an individual’s own and family use.

The car is for private use of a partnership firm, proprietorship, company or society.

A person who has a savings, current deposit or a term deposit account in the bank has to meet the following terms -

It is compulsory for individuals to have a salary of minimum Rs.20000 per month

The age of the applicant has to be between 21-65 years

For Salaried People - The person should be in service for 2 years at least and has to be employed throughout the repayment period.

For Professionals and Self Employed - The person has to be in the profession or business for a period of minimum 2 years and he should be a savings,current or term deposit holder with the bank.

For United Car Loan Scheme for Pensioners -

The pensioners of Central and State Government or their undertakings, public sector undertakings, educational institutions, defense service , reputed companies, United bank itself are eligible for car loans under this scheme.

The people who get their pension from United Bank of India have to meet the following criteria to be eligible for the loan.

The person should get a minimum of Rs 20000 per month from the pension.

If the person has an employed spouse and if he or she agrees to become a co-borrower, then his or her income can be considered while calculating the monthly income and monthly installment.

A person can take a loan with his wife or working son or daughter. The income of the spouse or the working child will be considered using a reference to income of I.T return.

United Bank of India’s retired and Voluntary Retired Scheme (VRS) employees are eligible for getting a car loan under this scheme.

Family pensioners do not qualify for this car loan scheme.

How to calculate EMI on United Bank of India Car Loan?

A person must always calculate his EMI before finalizing his car loan. He can calculate his EMI online using the EMI calculator under the finance tab on Bankbazaar.com. He should have information like loan amount, rate of interest, processing fee (if there is any), loan tenure ready with him before using the calculator.

Using Bank Bazaar EMI Calculator -

To calculate the EMI on Bank Bazaar’s EMI calculator, a person has to go to the first slider and choose the amount of loan. Then he has to go to the second slider and enter the tenure. Then he has to fill in the other information like the rate of interest and processing fee. After filling up all the information, he should click on the calculate button to get his detailed result which includes the EMI and the Amortisation table. Through the help of this information, he can choose the right loan for himself and enjoy a very good deal.

United Bank of India Car Loan FAQs

What categories of vehicles does United Bank of India finance?

You can avail of finance to purchase any kind of four-wheeler for personal use from United Bank of India.

Can I avail of a loan to finance a used vehicle?

Yes, United Bank of India will finance used cars provided the car is not more than 4 years old.

Where can I get a Car Loan Application form?

United Bank of India provides car loan application forms online and at its bank branches.

How do I apply for a United Bank of India Car Loan?

To apply for a car loan from United Bank of India, you can choose either of the two methods listed below.

Visit the nearest United Bank of India branch.

Apply on the United Bank of India Website.

How do I apply online for a United Bank of India car loan?

To apply for a car loan on the United Bank of India website, follow these simple steps.

On the homepage, on the lefthand menu, choose “Home loan/car loan” under Online Services.

You will be directed to the application form.

Fill in the form and submit it.

You have the option to resume your incomplete application if you have previously started one.

Can I check the status of my United Bank of India loan application online?

Yes, you can. Access the same tab under online services called “Home loan/car loan”. On the top of the application form you will see “Status Track”. Click on it and enter your application number. Select your loan type and click on submit to view your loan status.

Who is eligible to apply for a United Bank of India car loan?

The eligibility requirements are given below.

Salaried individuals

Self-employed

Businessmen and P&SE

Any individual earning a net monthly income of Rs. 30,000 after all deductions including the proposed car loan EMI.

What is the minimum income required to be eligible for this loan?

Salaried individuals should be earning Rs. 30,000 take home salary per month. This will be the salary after all deductions including the proposed car loan EMI.

For P&SE and Business people, the minimum income required is Rs. 5 lakhs per annum post income tax deductions.

For all others, the net income per month should be Rs. 30,000 after all deductions including the proposed car loan EMI.

What are the age limits for the United Bank of India car loan?

For salaried individuals, if you have future pension income, the maximum repayment age can be extended to 70 years.

For P&SE and Business people, the maximum entry age is 65 years. The maximum repayment age is before reaching 70 years. The business should be in existence for at least 2 years.

What are the Credit score requirements for the United Bank of India four wheeler loan?

Credit score required isn’t specified by UBI. The bank has the authority to enquire about your score. The usual limits to get a loan sanctioned are 750 and above. Banks may relax it to 550 under certain terms and conditions.

What is the maximum car loan quantum offered by United Bank of India?

For individuals, United Bank of India has set the maximum loan amount for new vehicles at Rs. 30 lakhs. For non-individuals there is no maximum loan limit.

What is the maximum loan tenure for a United Bank of India car loan?

For new cars the maximum tenure is 84 months.

For used cars, the maximum tenure is 60 months

What is the minimum car loan tenure for a United Bank of India four wheeler vehicle loan?

United Bank of India has not specified any minimum time period for repayment.

What is the interest rate offered by United Bank of India on new car loans?

The current base rate of United Bank of India is 9.65% per annum. The interest rates on car loans are given in the table below.

Tenure

Breakdown

Effective Interest Rate

Up to 84 months

BR+0.50%

10.00 % p.a.

What is the interest rate offered by United Bank of India on used car loans?

Tenure

Breakdown

Effective Interest Rate

Up to 60 months

BR+1.00%

10.65% p.a.

Are there any concessions offered on interest rates?

Yes, United Bank of India offers 0.25% concession on the interest rate if collateral is offered for 50% of the value of the loan. Collateral offered should be liquid. Any other tangible collateral will be accepted by the bank.

Are there any processing fees on United Bank of India Car Loans?

United Bank of India charges processing fees of 0.50% of the loan amount. This is subject to a maximum of Rs. 10,000 and a minimum of Rs. 500.

What are the document charges on car loans?

There are no document charges for UBI car loans.

Can I prepay the car loan from United Bank of India?

Yes, you can prepay the loan before the maturity date.

What are the charges for car loan prepayment?

United Bank of India does not levy any charge for prepayment of car loans.

What security or collateral is required by United Bank of India?

Hypothecation of the vehicle is required.

What are the margin requirements for new vehicles?

For new vehicles, 15% of the on road price is required as margin for individual borrowers as well as companies.

What is the margin limit for used vehicles?

For used vehicles, 15% of the valuation of the vehicle by a certified valuer will be taken as margin.

What are the penalties for late payments?

United Bank of India hasn’t mentioned the charges for late payment. Charges for late payment could include a fee of 1% of the defaulted amount and an increase in the rate of interest.

Can I make payments on my car loan online?

Yes, if you have a bank account with United Bank of India, you can register for online banking to make payments online.

How do I make the payments through net banking?

To pay your loan through your net banking account, login and access “my accounts”. Choose Loan accounts and you can view the details of your loan.

Under the tab “Funds Transfer”, you can choose “Loan repayment”. Enter the details and make the payment.

What is the car loan scheme offered by United Bank of India for pensioners?

United Bank of India offers a special scheme for pensioners to buy cars. If you have a net monthly pension of Rs. 20,000, you can avail of this loan. You should repay the loan before the age of 75 years.

Who is eligible for the United Bank of India pensioners car loan scheme

Pensioners can avail of up to 48 times their net pension subject to Rs. 4 lakhs maximum. Margin requirements are 20% of the on road price of new cars, and 30% of the assessed value of used cars. Processing charges are 0.50% of the loan amount. There are no prepayment charges.

Can I calculate my car loan EMI amount before applying for a United Bank of India car loan?

Yes, United Bank of India and BankBazaar provide EMI calculators online. You can enter your details and view your EMI amount, total interest payable and the total cost of the loan.

How do I use the EMI car loan calculator?

Click on the Calculator tab available on the United Bank of India home page. Enter the following details.

Loan Amount

Interest Rate

Loan tenure

Click anywhere outside the the entry boxes to make the calculation.

Does United Bank of India provide commercial vehicle loans?

No, United Bank of India does not provide loans to buy vehicles for commercial purposes.

How do I contact the United Bank of India Customer Care for car loan queries?

The United Bank of India customer care helpline can be reached on their toll free number 1800 - 345 - 0345. You can also contact them via email at [email protected]

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